Mikroökonomische Theorie
Microeconomic Theory

Course Overview

The purpose of this course is to introduce students to microeconomic modelling of producer and consumer behaviour at a more advanced level. Ideally, students will have attended the introductory course on Mathematical Methods of Economic Theory before entering this course, or will have been equivalently prepared. The course is primarily focused on optimal behaviour of producers and consumers. In addition, the course aims at an understanding of strategic interdependencies between individual firms under different forms of competition. All of this leads us to a mapping of firms and households interaction on goods and factor markets. Most importantly, it allows us to identify conditions under which the coordination of such decentralized decision making through the market mechanism yields an optimal outcome,
and to explore policy options if these conditions are violated.

Content: Optimal decision of producers under given technology and given input and output prices - impact of price changes on firm behaviour (goods supply, input demand). Optimal consumption decisions by households under given preferences, and under given income and goods prices - impact of price changes on consumption behaviour (goods demand, factor supply). Measuring the impact of price and income changes on households' utility. Aggregation: moving from the level of individual firms and households to the level of an entire economy. Coordination of household and firm decisions: price mechanism and optimality of the market outcome under perfect competition. Violation of optimality through market power. Individual decision making and market efficiency under information
asymmetries and uncertainty.

This course page also covers the Intensifying Course:
Microeconomic Theory
Mikroecoönomische Theorie
LVA-Nr.: 239.114

TEXTBOOK:
Hal R. Varian, Microeconomic Analysis, Verlag: Norton & Company; Auflage: 3. A. (22. Juni 1992).
Sprache: Englisch
ISBN-10: 0393957357
ISBN-13: 978-0393957358
NOTE: the above link takes you to the Amazon.de listing for the book.